Bata India Shares Sink To 7-Year Low As Sell-Off Deepens; Stock Heads For Worst Year In 16 Years

Bata India has remained under sustained selling pressure since its record high in November 2021 and has since lost nearly 58% of its value Bata India Share Price: The sell-off in footwear maker Bata India has intensified, with the stock continuing its downward grind and slipping to multi-year lows as weak investor sentiment persists amid ongoing growth challenges that continue to weigh on performance. In Tuesday’s session, December 02, the share price declined over 1% to touch a low of Rs 963.30 — its weakest level since November 2018. The stock has been on a steady downtrend since August 2024, ending 13 of the last 16 months in the red and shedding a cumulative 40%, making it one of its longest downturns in recent years. Bata India has remained under sustained selling pressure since its record high of Rs 2,262 in November 2021 and has since lost nearly 58% of its value. The stock is also headed for its weakest annual performance in 16 years, having slipped 30% so far in 2025. The last comparable crash was seen in 2008 when the stock plunged 63%, according to Trendlyne data. Even in the previous calendar year, the shares declined 17%. The sharp correction has significantly dented investor wealth and reduced the company’s market capitalisation to around Rs 12,400 crore. Weak Q2 numbers accelerate the sell-off The company posted another weak quarter in Q2FY26, with revenue declining 4% year-on-year to Rs 801 crore — its poorest performance in the last 10 quarters and below Street expectations. Top-line growth was impacted by deferred purchases by channel partners and customers following the announcement of GST rate rationalisation. In addition, a disruption at one of the company’s largest warehouses in July 2025 temporarily affected business operations. Profitability also came under pressure. Gross margin declined for the third consecutive quarter, falling 122 basis points year-on-year to 55.4%, as higher pre-festive markdowns and elevated marketing expenses hurt earnings. EBITDA fell 17% year-on-year to Rs 145 crore, while margins contracted 280 basis points to 18.1%. On the bottom line, consolidated net profit plunged 73.26% year-on-year to Rs 13.9 crore, marking the third straight quarterly decline. Profit was further impacted by a one-off voluntary retirement scheme expense at a factory. However, the company indicated early signs of improvement, stating that while the GST 2.0 transition dampened demand in Q2, sales momentum has picked up since September 22, when the new GST rates came into effect. The company also noted that its premium brands, including Hush Puppies and Power, are witnessing strong growth. Its zero-base merchandising initiative, aimed at improving efficiency and customer experience, has now been rolled out across 200 stores. Going ahead, investors will track whether these initiatives can deliver a meaningful turnaround amid intensifying competition. Performance in lower-priced product categories will also remain a key factor to watch.